A slowdown in the Chinese economy is expected to dampen Australia’s resources and export earnings in the coming years. China is Australia’s largest trading partner, and its appetite for Australian resources is a major driver of the Australian economy.
A number of factors are contributing to the slowdown in the Chinese economy, including:
The slowdown in the Chinese economy is expected to lead to lower demand for Australian resources, such as iron ore, coal, and liquefied natural gas (LNG). This is likely to have a negative impact on Australia’s export earnings and economic growth.
According to a recent report by the Department of Industry, Science, and Resources, Australia’s resources export earnings are expected to fall to A$400 billion in 2023/24, from a record A$467 billion in 2022/23. The report also predicts that resources export earnings will continue to decline in the following years, reaching A$352 billion in 2024/25.
The slowdown in China’s economy is a major challenge for the Australian economy. Australia needs to diversify its export markets and develop new industries to reduce its reliance on China.